West Bromwich East MP Tom Watson in a scene from his campaign video for Labour's Deputy Leadership

Sign up to FREE email alerts from BirminghamLive - daily

When you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. OurPrivacy Noticeexplains more about how we use your data, and your rights. You can unsubscribe at any time.

The Labour Party needs more working class candidates, Deputy Leader candidate Tom Watson has warned.

The Black Country MP issued a stark warning to his party as he warned ordinary people were being “priced out of politics”.

It follows fears that the cost of standing for Parliament with a serious chance of winning, which can involve quitting full-time work and campaigning solidly for months on end, is forcing potential candidates to give up their dreams.

Mr Watson, MP for West Bromwich East, set out plans which are likely to prove controversial for a “bursary” scheme - which would give candidates an income in the run-up to general elections.

In a speech formally launching his campaign to become Labour’s Deputy Leader, he said: “It’s only by building a more diverse membership that we will get a more diverse set of elected representatives. We need a Labour Party that looks like the country we want to serve. And yes, that does mean more working class candidates. I’m fed up of not being able to say that.

“People are being priced out of politics. I want to establish a bursary scheme for Parliamentary candidates who don't have the financial means to run for Parliament. Because it is the fair thing to do. And if Labour won’t do that, who will?”

Watch: Tom Watson's 71-year-old mum guest stars in his campaign video

The high-profile Midland MP also warned that Labour faces a real challenge from UKIP, which has won over many working class and middle class voters.

He told his audience: “If we are to win, we have to acknowledge where we went wrong in the last campaign. I’ve spoken to hundreds of members in a over a dozen seats in the last few weeks. They almost all tell me that Labour failed to deal with the UKIP threat early enough.

“Of the 50 seats where UKIP made biggest gains, 32 of them were Labour.

“Of course we needed to win back Labour supporters who voted Tory in May. But If we are to win we also have to understand why so many Labour supporters voted UKIP.”

And he added: “Responding to the concerns of former Labour voters who left us to vote for UKIP will be an important part of Labour reconnecting with the communities of Britain.”

Mr Watson said he wants to become Labour’s Deputy Leader to help the party campaign - and would back the leader when it came to deciding party policy.

A still from BBC documentary Labour - The Wilderness Years shows a young Tom Watson, centre left, next to former Labour Party leader Neil Kinnock, following Labour's election loss in 1987.

But he faces a tough battle in the deputy leadership contest against rival candidates including Shadow Energy Minister Caroline Flint and London MP Stella Creasy, known for her campaign against irresponsible payday lenders.

It follows the resignation of former Labour leader Ed Miliband after Labour’s general election defeat. Deputy Leader Harriet Harman is currently the party’s acting leader, but has said she will also resign.

It means Labour is electing a leader and a deputy leader, with the winners to be announced in September,